J.C. Penney Co. (JCP) Downgraded by Zacks Investment Research
J.C. Penney Co. (NYSE:JCP) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a report issued on Monday.
According to Zacks, “J. C. Penney has taken up several strategic initiatives to drive traffic. The company, in order to enhance customer shopping experience, has been focusing on remodeling, renovating and refurbishing its stores with special focus on enhancing high-margin center core department. The company’s strong in-store and online businesses, and solid performance across most merchandising divisions, with Sephora being one of the top performers, helped delivered upbeat performance in second-quarter fiscal 2016. These factors, along with the company’s constant efforts to drive omnichannel operations, make it confident of boosting sales and EBITDA in the remainder of fiscal 2016. On the flip side, the company’s high-debt level and competition from other department stores remain concerns. Nonetheless, management is concentrating on lowering the debt level and expects to reduce its net debt to EBITDA ratio to less than three times by fiscal 2017.”
Other equities research analysts have also recently issued reports about the stock. B. Riley restated a “buy” rating and set a $16.00 price objective on shares of J.C. Penney in a research report on Saturday, September 3rd. Cowen and Company restated a “market perform” rating and set a $10.00 price objective on shares of J.C. Penney in a research report on Monday, August 15th. Jefferies Group restated a “hold” rating and set a $10.00 price objective on shares of J.C. Penney in a research report on Thursday, August 18th. Morgan Stanley raised their price objective on shares of J.C. Penney from $7.50 to $8.50 and gave the stock an “underweight” rating in a research report on Thursday, August 18th. Finally, Vetr upgraded shares of J.C. Penney from a “hold” rating to a “buy” rating and set a $10.35 price objective for the company in a research report on Monday, August 29th. Two research analysts have rated the stock with a sell rating, thirteen have given a hold rating, eleven have issued a buy rating and one has given a strong buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus price target of $11.44.
This story is the sole property of American Banking News and it was originally published by American Banking News. If you are reading this story on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law. The original version of this article is available at https://www.americanbankingnews.com/2016/10/17/j-c-penney-co-jcp-downgraded-by-zacks-investment-research.html
Shares of J.C. Penney (NYSE:JCP) traded down 0.288% during midday trading on Monday, hitting $8.645. 5,815,061 shares of the stock traded hands. The company’s market cap is $2.66 billion. The stock has a 50-day moving average of $9.51 and a 200-day moving average of $9.19. J.C. Penney has a 52-week low of $6.00 and a 52-week high of $11.99.
J.C. Penney (NYSE:JCP) last posted its quarterly earnings results on Friday, August 12th. The department store operator reported ($0.05) earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.15) by $0.10. The firm had revenue of $2.92 billion for the quarter, compared to the consensus estimate of $2.93 billion. J.C. Penney had a negative net margin of 3.11% and a negative return on equity of 10.18%. The company’s revenue for the quarter was up 1.5% on a year-over-year basis. During the same period last year, the firm posted ($0.41) earnings per share. On average, equities analysts predict that J.C. Penney will post $0.16 earnings per share for the current fiscal year.
In other J.C. Penney news, Chairman Marvin R. Ellison bought 50,000 shares of the business’s stock in a transaction dated Thursday, August 25th. The shares were acquired at an average cost of $9.92 per share, with a total value of $496,000.00. Following the acquisition, the chairman now directly owns 2,557,317 shares of the company’s stock, valued at approximately $25,368,584.64. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. 1.28% of the stock is currently owned by insiders.
Several institutional investors have recently made changes to their positions in the stock. Parametrica Management Ltd acquired a new position in shares of J.C. Penney during the second quarter worth approximately $102,000. Invictus RG purchased a new position in shares of J.C. Penney during the first quarter valued at about $103,000. Advisors Asset Management Inc. boosted its position in shares of J.C. Penney by 40.8% in the second quarter. Advisors Asset Management Inc. now owns 11,546 shares of the department store operator’s stock valued at $103,000 after buying an additional 3,346 shares in the last quarter. Private Advisor Group LLC purchased a new position in shares of J.C. Penney during the second quarter valued at about $115,000. Finally, Gofen & Glossberg LLC IL purchased a new position in shares of J.C. Penney during the third quarter valued at about $129,000. 88.53% of the stock is currently owned by institutional investors and hedge funds.
About J.C. Penney
J. C. Penney Company, Inc is a holding company. The Company’s operating subsidiary is J. C. Penney Corporation, Inc (JCP). The Company’s business consists of selling merchandise and services to consumers through its department stores and its Website at jcpenney.com, which utilizes optimized applications for desktop, mobile and tablet devices.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for J.C. Penney Co. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for J.C. Penney Co. and related companies with MarketBeat.com's FREE daily email newsletter.